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Oh I see the high unemployment in Greenville has nothing to do with the real estate market.....very interesting!
High unemployment is not the only factor but it is a big contributor. If the economy is not healthy then there are less people with the income to qualify for bank loans, which means there will be more homes sitting on the market for a lot longer waiting to sell. There is a direct connection between a healthy economy, low unemployment and people having the means and desire to purchase homes. Foreclosures are another thing....look at the amount of unemployment in the area and an increase in the amount of foreclosures are close behind. One thing is for sure if I could turn back the clock I would have never purchased a home....too much of a long term commitment and too much headache trying to sell when the economy turns bad.
Oh I see the high unemployment in Greenville has nothing to do with the real estate market.....very interesting!
High unemployment is not the only factor but it is a big contributor. If the economy is not healthy then there are less people with the income to qualify for bank loans, which means there will be more homes sitting on the market for a lot longer waiting to sell. There is a direct connection between a healthy economy, low unemployment and people having the means and desire to purchase homes. Foreclosures are another thing....look at the amount of unemployment in the area and an increase in the amount of foreclosures are close behind. One thing is for sure if I could turn back the clock I would have never purchased a home....too much of a long term commitment and too much headache trying to sell when the economy turns bad.
I never said unemployment has nothing to do with the real estate market. Again, you are making a statement about one city in one state without taking into account the situation nationally. First of all, the unemployment rate is no worse in Greenville than the national unemployment rate. Is that fine? Absolutely not! However, after reading your posts, you'd think the unemployment rate was much higher in Greenville when that is simply false. Second, there are other factors involved that are keeping individual housholds from securing motgage loans, not the least of which includes much tighter financial regulations. Even large corporate developers are experiencing greater difficulty financing projects. It is just another sign of the weaker global and national economies, which are more inter-dependent than ever.
Several homes in the neighborhood that have been for sale for over a year....everytime I visit Greenville those same homes are still sitting un-sold. Some people in the neighborhood where my home is have become so desperate that they have given up trying to sell and are now trying to rent the homes out.
Play it safe....rent for the next few years...this way if things get worse you can just pack up and move.
Until the economic meltdown, I think people forgot that the main problem with real estate is that it isn't liquid. As long as the economy is good and houses are being sold, they only seem liquid.
We have a business and work out of our home, but we feel nervous about where everything is going. If we bought a house right now and prices keep falling, then we'd end up as upside down as many current owners are.
We actually found a house online for sale where the price has dropped twice - it's now $45,000 less. We sent a letter to the address letting them know we're available to rent it with an option to buy. We love the house and location, but have decided to rent for two years and then see what is going on.
I am hoping they consider it. More owners are looking at creative options like that.
There is a glut of foreclosed housing stock from coast to coast. Part of the reason that housing is not selling well in any area is that banks are not lending. The new rules put in place require banks to have more liquid assets on hand. The new rules also tightened up lending policies. Almost any individual who has 20% down and a decent FICO score can quality for a house - providing the selling price does not exceed the buyers ability to repay the loan. The days of no-down 100% loans is dead.
Do not avoid G'ville because of the housing stock. It is not necessarily an indication of the health of the city.
There is a glut of foreclosed housing stock from coast to coast. Part of the reason that housing is not selling well in any area is that banks are not lending. The new rules put in place require banks to have more liquid assets on hand. The new rules also tightened up lending policies. Almost any individual who has 20% down and a decent FICO score can quality for a house - providing the selling price does not exceed the buyers ability to repay the loan. The days of no-down 100% loans is dead.
Do not avoid G'ville because of the housing stock. It is not necessarily an indication of the health of the city.
A score of 650 and 3.5% down will still get you an FHA loan.
I was thinking about a Conventional Bank Loan when I wrote that statement. Of course FHA, VA, and Rural Development loans have different "rules" for sellers, buyers and lenders. It is a much more involved process that takes somewhat longer.
I've bought a lot of houses in the Midwest in 30 years and it has been a strange adventure. I had a B/O tell me she could close a pre-approved VA loan on my house in two weeks. Of course i knew it could not happen and I was not disappointed. Every loan is different. The fastest I Closed was two weeks. I Closed two houses in 24 hours in two states. And I waited a year to get a Impediment removed from another Title. If you don't mind packing and moving, flipping houses can be fun and sometimes profitable.
I was in the Carolinas a few years ago. It's gorgeous. I can't imagine anyone not wanting to live near thw ocean if they have the opportunity. To me - near the ocean - is naything less than 3 days. .
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